Dell raises full-year forecasts on AI strength, demand recovery
Dell Technologies raises its full-year revenue and profit forecast, benefiting from the AI boom and stabilizing demand for computer hardware and server products.
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Posted 8/31/2023, 9:34:00 PM
reuters.com
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Wall Street is expected to continue its recent gains, fueled by optimism around Nvidia's upcoming earnings and the potential long-term boost in earnings per share from the adoption of artificial intelligence (AI). According to Goldman Sachs, companies with high exposure to AI adoption and larger size are likely to see increased valuation multiples as the adoption timeline becomes clearer.
Taiwan Semiconductor Manufacturing Company (TSMC) reported a decline in revenue growth in the first half of 2023 due to reduced customer orders and sluggish shipment growth, which can be attributed to the wider semiconductor market downturn and weaknesses in the PC, smartphone, and server markets, overshadowing the company's modest revenue contribution from AI growth. However, TSMC's growth recovery could be supported by the improving outlook in end markets such as smartphones, PCs, and servers.
Tech stocks, including Consensus Cloud Solutions and Pegasystems, are predicted to rally into the year-end and benefit from the AI-driven growth of the tech industry, according to Wedbush analyst Daniel Ives.
Semiconductor company Nvidia has seen its revenue double year-on-year in the second quarter of 2023, thanks to the growing demand for artificial intelligence technology and its specialized chips, making it uniquely positioned to capitalize on the AI boom.
Dell Technologies reported better-than-expected sales of personal computers and data center hardware, and expressed optimism about the demand for AI products, indicating a potential recovery in the market for corporate technology.
Dell's stock surges after the company reports better-than-expected earnings and strong demand for its products.
Dell Technologies' stock rises after positive earnings update, with analysts highlighting three drivers for optimism.
Dell shares surged 22% on Friday, the company's best day since returning to the public market in 2018, following better-than-expected earnings driven by a big revenue beat, and Morgan Stanley named Dell its top IT hardware pick, replacing Apple, due to its emergence as an early Generative AI winner and strong demand for AI servers.
Shares in Dell and Samsung have risen as investors speculate on their future AI prospects, with Dell attributing its revenue growth to rising demand for AI-optimized servers and workstations, and Samsung's price increase fueled by expectations of supplying advanced memory chips for AI processing.
Super Micro Computer, a developer and manufacturer of high-performance servers and storage systems, is benefiting from the explosive growth in artificial intelligence and high-powered computing, positioning it as an attractive investment opportunity with strong revenue growth and profitability.
Intel Corp. is expected to see stabilization and material gains in its data-center business due to increased artificial-intelligence spending.
Despite a decline in overall revenue, Dell Technologies has exceeded expectations due to strong performance in its AI server business, driven by new generative AI services powered by Nvidia GPUs, making it a potentially attractive investment in the AI server space.
Super Micro Computer, a company that sells high-performance server and storage solutions, is positioned for strong growth due to its exposure to the fast-growing markets of AI, data centers, and cloud computing, with the potential to reach $10 billion in revenue by fiscal year 2024.
Tech stocks have been driving the market gains this year, particularly in the field of artificial intelligence (AI), with analysts like Daniel Ives predicting long-term growth and recommending AI-focused companies such as Palantir Technologies and C3.ai.